SBI Cards reported strong financial performance for Q4 and FY26, with profit after tax reaching INR609 crores in Q4, representing 14% year-on-year growth. For the full financial year 2026, the company achieved a PAT of INR2,167 crores with 13% year-on-year growth. Total revenue for FY26 stood at INR20,708 crores, registering 11% growth, driven by higher spend-based income and increased overall spends of INR4.3 trillion during the year.

The net interest margin showed notable improvement, reaching 11.2% in FY26, higher by 31 basis points year-on-year. In Q4 FY26, NIM improved to 11.1% compared to 11% in Q3. The cost of funds during Q4 was 6.4%, lower by 82 basis points year-on-year, while for FY26 it stood at 6.7%, down 71 basis points. The company expects NIM to remain stable, though it faces potential risks from any significant increase in the cost of funds due to uncertain macroeconomic conditions.

Asset quality showed continued improvement during the quarter. Gross credit cost improved by 55 basis points quarter-over-quarter to 7.7%, while GNPA reduced by 46 basis points quarter-over-quarter to 2.41%. The NPA stock decreased by INR268 crores quarter-over-quarter and INR348 crores year-on-year to INR1,370 crores. Stage 2 balance reduced by INR149 crores quarter-over-quarter and INR711 crores year-on-year to INR2,090 crores. The company is retaining an overlay of INR220 crores for ECL provision given geopolitical uncertainties.

Looking ahead to FY27, management provided guidance on key operational metrics. The cost-to-income ratio is expected to remain in the range of 55% to 58%. The company maintains its medium-term Return on Assets target of 4% to 4.5% and expects asset growth to follow card acquisition patterns. During Q4, the company added 917,000 new accounts with a sourcing mix of 54% from open market and 46% from banca channels. The capital adequacy ratio remained strong at 25.5% for Q4.

The company declared an interim dividend of INR2.50 per equity share during FY26. Management emphasized that while they expect credit costs to moderate further in FY27, the rate of moderation will depend on the evolving geopolitical landscape and its impact on macroeconomic factors. With adequate capital and provision buffers, the company does not foresee any significant impact in the coming quarter.

SBI Cards and Payment Services Limited conducted its Q4FY26 earnings conference call on April 27, 2026, where management discussed strong financial performance and strategic initiatives. The company reported robust quarterly results with improved profitability and enhanced asset quality metrics.

Financial Performance Highlights

The company delivered strong financial results for Q4FY26, demonstrating consistent growth across key metrics. Total revenue for the quarter reached ₹5,187 crores, representing 7% year-on-year growth, while annual revenue for FY26 stood at ₹20,708 crores with 11% growth.

Asset Quality and Risk Management

SBI Cards demonstrated significant improvement in asset quality metrics during Q4FY26. The company's gross Stage 3 ratio declined to 2.41%, while net Stage 3 ratio improved to 1.04%. Management highlighted enhanced risk management frameworks and collection efficiency as key drivers.

Business Operations and Market Position

The company maintained its position as India's second-largest credit card issuer with 18.6% market share in cards-in-force. During Q4FY26, SBI Cards added 917,000 new accounts while focusing on quality-led acquisition. Total spends exceeded ₹1.15 trillion for the quarter with 31% year-on-year growth.

Strategic Outlook and Management Commentary

Managing Director Salila Pande emphasized the company's focus on supporting India's digital payment landscape while maintaining disciplined growth. The management highlighted initiatives in hyper-personalization, digital acquisition through SBI Card Sprint, and enhanced product portfolio including co-branded cards with Tata Neu, Flipkart, IndiGo, and PhonePe.

The company declared an interim dividend of ₹2.50 per equity share, reflecting confidence in business fundamentals. Management expects credit costs to moderate further in FY27, though remains vigilant about geopolitical uncertainties and macroeconomic factors affecting the unsecured lending ecosystem.